Amazon pays $40m to settle patent case

Amazon has settled its 12-month legal case with Soverain Software with a payment of $40m, according to documents filed with the Securities and Exchange Commission. 

Amazon's papers reveal that it made "a one-time payment of $40m in the third quarter of 2005, dismissal of all claims and counterclaims, mutual releases, and a non-exclusive licence to Soverain's patent portfolio".

Soverain filed a case against Amazon in January last year for intellectual property theft, and jury selection was due to start next week. Amazon has also agreed to license some of Soverain's software as part of the deal.

Soverain sued over illegal use of its software for online payments, shopping carts and identification of users. The company won a large payout from clothing chain Gap last year in a similar case.